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How Can I Take Legal Action In Order To Receive My Debt ?

  • Writer: Lead India
    Lead India
  • Aug 9, 2023
  • 3 min read

One may face a situation, at some point, where it becomes a hard task for him or her to get their own money back from someone, the legal course of action could be of assistance. By sending a legal notice for the recovery of money, one issues a formal warning to the person owing money to repay the due amount or else the aggrieved party would initiate the legal proceedings.

Legal notice for the recovery of money is a formal intimation between the two parties before a legal action is initiated in order to get their due payment. A legal notice could be sent from anyone,i.e. from a dealer to an employee, tenant, friend, company, bank, etc.



India on recovery of money

Sending a legal notice is, as was already said earlier, one of the most crucial measures in India for money recovery. A legal notice by an advocate is generally issued on behalf of his/her client for the purpose of settlement as well as to communicate the intention of his/her client in order to initiate legal proceedings. A legal notice shall include the following details-

  • Name, description and the address of the sender.

  • Details related to the cause of action.

  • Any monetary relief which has been claimed by the sender of the notice.

  • The legal basis based on which the relief has been claimed.

Hence, it is advised to send a lawyer’s notice to the debt payer, in order to ensure positive results.

Steps to draft a Legal Notice-

  • A legal notice is required to be drafted on the letterhead of the advocate and should be specific and proper.

  • The addresses and contact details of the advocate are required to be added in the legal notice.

  • It shall also contain the date on which the notice was issued and the name, address as well as the contact details of the person to whom the legal notice is being issued to.

  • In case the legal notice for recovery of money is going from the client’s end, the name and details of the client are required to be included

  • It has to be mentioned in the notice as to how the right of the sender was infringed due to the act or omission by the receiver of the notice and what compensation should be paid. Also, a specific amount of time should be provided in the notice to send the reply.

  • The legal notice shall be signed by the advocate as well.

Some of the situations where legal notice for recovery of money can be sent-

  • Tenant- cases where the tenant has not paid the rent to the landowner, resulting in a huge amount of money which the landowner is entitled to receive. In this situation, the landowner can send a legal notice.

  • Employee-when an employee absconds with the money, an internal enquiry shall be initiated and a show-cause notice will be sent to the residential address of the employee.

  • Employer/Company- when an employer deprives his/her employees of their legitimate salary, in such a situation several remedies are available to seek recovery of money, including sending a legal notice.

  • A debt recovery tribunal is established in every state to address debt-related concerns, and the entire process is started by sending a legal notice for debt recovery to the banks or other financial institutions.

  • Dealer- during business transactions, producers generally sell their products through distributors and keep security deposits from the dealers and distributors in the form of post-dated cheques.

  • Recovering money from a friend- In order to avoid any unpleasant issue in the future which may involve sending a legal notice for the redressal of your grievance, you must offer a loan to friends or family through either promissory notes or loan agreements.

Conclusion

Legal notice for money recovery is a formal intimation between two people warning the other of a possible legal action which could be initiated to get their due payment.

In order to send a legal notice, you are advised to contact an advocate , who could guide you through the proper legal procedure as well as drafting a legal notice for such an act. As only after not getting a proper reply to the notice, one shall have proper reason to initiate civil proceedings in the court. During which a court notice would be sent to the defendant.

Lead India offers you an experienced team of advocates who have been successfully dealing with civil as well as criminal cases and could offer you appropriate advice and assistance as required. Thus, if you wish to talk to a lawyer online or seek free legal advice, you may contact us.


Call Us: +91–8800788535

Email: care@leadindia.law


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